Double blow for Clarke's funds firm

12 April 2012

KENNETH Clarke's fund manager, Savoy Asset Management, has dealt its investors another blow, warning profits will miss the target and that it cannot afford to pay a final dividend.

The AIM-listed firm, where the former Chancellor is chairman, said profits for the year to 31 March 2002 would be below market expectations. It faced operating losses even before negatives such as one-off items. SAM currently has cash of around £4m.

SAM is to seek investors' backing for a capital revamp, which would 'enhance the group's ability to pay dividends in the future'.

The shares plunged 20p to 100p, a new low. The stock has tumbled in the past year, largely thanks to an ill-fated attempt to expand in the Middle East. It briefly hit 185p in January on takeover hopes.

SAM made pre-tax profits of £270,000 last year, and analysts had been looking for around £200,000 in the latest results. It paid out a total dividend of 6p a share last year, an outlay of more than £500,000.

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